Provide a wide range of financial services to all sectors of the economy,
including (through subsidiaries) funds management and insurance services.
Foreign banks authorised to operate as branches in Australia are required
to confine their deposit-taking activities to wholesale markets.

Special-purpose vehicles that issue securities backed by pools of assets
(eg mortgage-based housing loans). The securities are usually credit enhanced
(eg through use of guarantees from third parties).

64

118

Funds managers and insurers

Life insurance companies

APRA(e)

Provide life, accident and disability insurance, annuities, investment and
superannuation products. Assets are managed in statutory funds on a fiduciary
basis, and are mostly invested in equities and debt securities.

31

180

Superannuation
and approved
deposit funds
(ADFs)

APRA

Superannuation funds accept and manage contributions from employers (incl.
self-employed) and/or employees to provide retirement income benefits.
Funds are controlled by trustees, who often use professional funds managers/advisers.
ADFs are generally managed by professional funds managers and, as with
super funds, may accept superannuation lump sums and eligible redundancy
payments when a person resigns, retires or is retrenched. Superannuation
funds and ADFs usually invest in a range of assets (equities, property,
debt securities, deposits).

Trustee companies pool into common funds money received from the general
public, or held on behalf of estates or under powers of attorney. Funds
are usually invested in specific types of assets (eg money market investments,
equities, mortgages).

13

8

Friendly societies

APRA

Mutually owned co-operative financial institutions offering benefits to
members through a trust-like structure. Benefits include investment products
through insurance or education bonds; health; funeral; accident; sickness;
or other benefits.

(a) Subsidiaries of an institution undertaking the same activity are treated as part
of a single group.
(b) Refers only to the Australian banking operations and does not include assets
of banks' overseas branches or domestic and foreign non-bank subsidiaries.
Banks' global consolidated group assets (for all locally incorporated
and foreign bank branches) at December 2001 were $1,173 billion.
(c) ASIC does not conduct prudential supervision of these institutions, but does
regulate certain aspects of their operations (eg compliance with the fundraising
and securities licensing provisions of the Corporations Law).
(d) Groups with total assets below $50 million are not included.
(e) State Government-owned insurance offices are not covered by Commonwealth legislation,
nor supervised by APRA.
(f) Includes assets in life office statutory funds, but excludes pooled superannuation
trusts, non-regulated public sector funds and self-managed superannuation
funds (which have less than five members); self managed funds are regulated
by the Australian Tax Office. Total superannuation assets were estimated
to be around $518 billion as at December 2002.